Are You Willing to Pay for “Greater Environmental Friendliness”? The Role of Artificial Intelligence in Enhancing Products' Environmental Benefits

ABSTRACT With the increasing popularity of green consumption, this study investigates how product environmental benefits influence consumers' willingness to pay. Drawing upon the illusion of control theory, the research specifically distinguishes between autonomous (AI‐driven) and static (non‐AI‐driven) environmental benefits, while also examining the mediating effect of perceived control and the moderating effect of environmental locus of control. Through one field and two scenario experiments, the study found that autonomous environmental benefits exert a stronger positive influence on willingness to pay compared to static benefits. Furthermore, this relationship is significantly mediated by perceived control, and this mediating effect is particularly pronounced for consumers with an external environmental locus of control. These findings extend the theoretical application of the illusion of control theory in the green consumption context and offer valuable insights for designing compelling environmentally friendly products and formulating effective green marketing strategies.